york or washington or some other city. (instrumental music) >> the president wants $489 billion in defense cuts over ten years. pentagon officials say the goal is to create a smaller, flexible force that can fight traditional wars and mount special operations. >> now that we know the threats that are out there, where is our money being spent? >> the congressional budget office had an estimate that they put the total u.s. spending for defense at $699 billion. now, that is 20 percent of all federal spending, that is more than half of all discretionary spending. it's a substantial commitment to the united states. >> we spend less and less of our defense dollars on things that actually defend us. fifty percent of our defense budget goes to personnel. much of that personnel is bureaucratic personnel manning various defense department sites. >> currently much of the money is going to conventional needs, personnel, r and d and nuclear weapons. >> the congress debated the issue of replenishment of our stock or at least making cert